What’s behind GMX’s rising V2 traction?
- GMX V2 saw a surge in network activity on 28 September.
- This was due to the launch of GMX quests a few days prior.
The V2 iteration of popular perpetuals DEX decentralized exchange (DEX) GMX witnessed a notable tick in network activity on 28 September.
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As noted in a recent post on X (formerly Twitter), crypto research analyst Flowslikeosmo found that the DEX saw an influx of 8,390 new users and 855 returning users on that day.
$GMX V2 is currently experiencing its largest influx of both new and returning users since its initial launch. ?
8.39k new users vs. 855 returning users yesterday. pic.twitter.com/UW3rEe7uYM
— Emperor Osmo? (@Flowslikeosmo) September 29, 2023
This represented its highest count of new users and daily active addresses since the second iteration of the DEX went live on Arbitrum [ARB] on 6 August.
– New assets are available for trading
– Multiple collateral types can be used
– Faster execution speed & lower slippage
– Low-fee swaps and trades
– Isolated pools
– OI balancing and Swap incentives
— GMX ? (@GMX_IO) August 6, 2023
This surge was believed to be a direct result of the recent introduction of GMX quests through the Arbitrum Odyssey campaign just a few days ago.
The new demand for the protocol due to the quests pushed the daily count of active traders on GMX V2 to 14,170 on 29 September. This marked its daily highest count of unique wallet addresses that have completed trades on the platform since it launched in August.
In contrast, GMX V1 recorded only 2,910 active wallet addresses on the same day.
Bulls smile on GMX
New demand for the protocol’s token in the last week pushed its value to see double-digit gains during that period. At press time, GMX traded at $38.78, growing by 12% in the past seven days.
Due to the increased demand, the token’s key momentum indicators observed on a daily chart approached overbought highs as of this writing. For example, the Relative Strength Index (RSI) was 73.50. Also, its Money Flow Index (MFI) was 64.22.
Further, GMX’s Chaikin Money Flow (CMF) was spotted at 0.23. Above the center line and positive at press time, the token saw capital inflow on the spot market.
How much are 1,10,100 GMXs worth today?
However, GMX’s price traded above the upper band of its Bollinger Bands indicator. While this showed increased buying pressure, when an asset’s price trades above the upper band, it signals that the market is becoming overheated and that a pullback is likely.
This is because the price is rising above the average price and becoming more volatile.